Officials and members of the Government Service Insurance System (GSIS) have been sued for allegedly refusing to fully pay the legal services rendered by their lawyer.
In a nine-page complaint filed before the Quezon City Regional Trial Court (RTC), lawyer Mauro John Reyes 3rd of the Reyes and Reyes Law Offices accused the Kapisanan ng mga Manggagawa sa GSIS (KMG) of ignoring his demands for the payment of his legal services after the association received the third and final tranche of their Collective Negotiation Agreement (CNA) incentive from the GSIS management on February 12, 2012.
As part of his Specific Performance with Damages suit, Reyes also asked the court to require KMG President Gelanie Mariano and 65 other officials and members to indemnify him P150,000 for the damages and legal services rendered.
Under the Contract of Legal Service between KMG and Reyes, KMG stipulated that it shall pay Reyes a monthly retainer fee of P5,000 and a contingent fee of five percent of whatever amount shall be awarded to KMG in the CNA.
“Through the great effort of the KMG panel, the KMG was able to negotiate the grant of CNA Incentive to all GSIS employees in three annual tranches from June 19, 2009 to June 2011,” Reyes said.
The KMG was able to fulfill its obligation to Reyes on the first two tranches of the CNA incentive on July 20, 2009 and June 12, 2010.
In February 2012, the new administration of KMG led by Abdon Imperial, refused to pay Reyes’ legal service fee for the third and final tranche of the CNA incentive.
KMG has reportedly ignored Reyes’ demand letters and, instead filed a case of estafa against the lawyer and the former officers of the KMG, alleging that the 2007 Contract of Legal Service and the issuance of checks were tainted with fraud and deceit.
The Office of the City Prosecutor (OCP) in Pasay City subsequently dismissed the estafa charges and ruled that the former KMG management “performed within their duties and functions when they signed and issued checks for respondent Atty. Reyes.”
“Despite the favorable resolution of the OCP declaring the validity of the Contract of Legal Services entered into by the then KMG President and the Plaintiff, as well as repeated written demands to comply with the provisions of the Contract of Legal Services, respondents failed or have refused to comply with their reciprocal duty and obligation to pay under the Retainer Agreement and the Contract of Legal Service,” Reyes said in his complaint.